Armour Energy signs gas sales agreement with Shell Energy Australia

On 20 March 2023, Armour Energy Limited {ASX: AJQ) signed a Master Sales Agreement (MSA) with Shell Energy Australia Pty Ltd, a subsidiary of the Shell Group, which allows for the bilateral trading of gas. Under the MSA, both companies have entered into an initial 13-month gas sales agreement (GSA) with a gas price of AU$12/GJ for December 2023, followed by an uplift in the contract price in CY2024 based on forecast 2024 market pricing improvements.

The MSA provides the framework terms for transactions that can utilize the Newstead Gas Storage facility, which is 100% owned and operated by Armour, to take advantage of gas demand cycles. Armour has also implemented an extensive program to increase production from its Surat Basin portfolio with technical and operational support from SLB.

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